January 2022
The 2022 real estate market begins where 2021 left off, in which existing home sales
reached their highest level since 2006, with the National Association of REALTORS®
reporting sales were up 8.5% compared to the previous year as homebuyers rushed
to take advantage of historically low mortgage rates. Home sales would’ve been
even greater were it not for soaring sales prices and a shortage of homes for sale in
many markets, forcing a multitude of buyers to temporarily put their home purchase
plans on hold.
New Listings were down 11.9 percent to 1,158. Pending Sales increased 6.3 percent
to 1,326. Inventory shrank 23.9 percent to 1,086 units.
Prices moved higher as Median Sales Price was up 14.6 percent to $239,500. Days
on Market decreased 26.3 percent to 28 days. Months Supply of Inventory was
down 27.3 percent to 0.8 months, indicating that demand increased relative to
supply.
For many buyers, 2022 marks a new opportunity to make their home purchase
dreams a reality. But it won’t be without its challenges. Inventory of existing homes
was at 910,000 at the start of the new year, the lowest level recorded since 1999,
according to the National Association of REALTORS®, and competition remains
fierce. Affordability continues to decline, as inflation, soaring sales prices, and
surging mortgage interest rates reduce purchasing power. The sudden increase in
rates and home prices means buyers are paying significantly more per month
compared to this time last year, which may cause sales to slow as more buyers
become priced out of the market.
Information courtesy of CMLS*
